BP sets out ambitious new plan

BP’s new CEO Bernard Looney has announced that the company’s new purpose is to ‘reimagine energy for people and our planet.’

BP has set a new ambition to become a net zero company by 2050 or sooner, and to help the world get to net zero.

The ambition is supported by ten aims, five of which are to get BP to net zero, and the other five to help the world to get to net zero.

Five aims to get BP to net zero:

Net zero across BP’s operations on an absolute basis by 2050 or sooner.

Net zero on carbon in BP’s oil and gas production on an absolute basis by 2050 or sooner.

50% cut in the carbon intensity of products BP sells by 2050 or sooner.

Install methane measurement at all BP’s major oil and gas processing sites by 2023 and reduce methane intensity of operations by 50%.

Increase the proportion of investment into non-oil and gas businesses over time.

Five aims to help the world get to net zero:

More active advocacy for policies that support net zero, including carbon pricing.

Further incentivise BP’s workforce to deliver aims and mobilise them to advocate for net zero.

Set new expectations for relationships with trade associations.

Aim to be recognised as a leader for transparency of reporting, including supporting the recommendations of the TCFD.

Launch a new team to help countries, cities and large companies decarbonise.

To deliver the ambition, BP has said that it will fundamentally reorganise to become a more focused, more integrated company. This will comprise of four business groups to deliver performance and value growth (Production & Operations; Customers & Products; Gas & Low Carbon Energy; and Innovation & Engineering), three integrators to identify and maximise opportunities (Sustainability & Strategy; Regions, Cities & Solutions; and Trading & Shipping) and four core enablers to support business delivery (Finance; Legal; People & Culture; and Communications & Advocacy).

BP confirmed that it will host a capital markets day in September 2020 to set out its strategy and near-term plans.

Bernard Looney said: “The world’s carbon budget is finite and running out fast; we need a rapid transition to net zero. We all want energy that is reliable and affordable, but that is no longer enough. It must also be cleaner. To deliver that, trillions of dollars will need to be invested in replumbing and rewiring the world’s energy system. It will require nothing short of reimagining energy as we know it.

“This will certainly be a challenge, but also a tremendous opportunity. It is clear to me, and to our stakeholders, that for BP to play our part and serve our purpose, we have to change. And we want to change – this is the right thing for the world and for BP.”

Helge Lund, BP’s chairman, commented: “Energy markets are changing, driven by climate change, technology and societal expectations, and the Board supports Bernard and his new leadership team´s ambition for BP. Aiming for net zero is not only the right thing for BP, it is the right thing for our shareholders and for society more broadly. As we embark on this ambitious agenda, we will maintain a strong focus on safe, reliable and efficient operations and on delivering the promises we have made to our investors.”

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